KUALA LUMPUR: Foreign investors continued their exodus from Asian equities for the third straight week, offloading a net US$6.73 billion (US$1=RM4.43), with the Philippines the only exception.
Taiwan saw the heaviest outflows at US$3.80 billion, led by sell-offs in semiconductor giant TSMC amid concerns over chip stock valuations. South Korea (-US$1.51 billion), India (-US$603.9 million), Thailand (-US$248.6 million), Indonesia (-US$225.7 million), and Vietnam (-US$66.9 million) also recorded foreign exits.
Bursa Malaysia faced a net foreign outflow of RM1.34 billion (US$302.4 million), though local institutional investors cushioned the impact with a strong RM1.31 billion inflow, marking their 21st consecutive week of support.
MIDF Amanah Investment Bank Bhd noted that the Philippines led the region with a US$32.5 million net inflow, despite political turmoil, including the arrest of former President Rodrigo Duterte and the impeachment of Vice-President Sara Duterte. Analysts, however, warn that sustaining growth would require a GDP surge of 9 per cent–9.5 per cent annually until 2028, far above the government’s 6 per cent–8 per cent target.
South Korea’s investor sentiment remained weak after the US Energy Department classified it as a “sensitive” country, raising geopolitical concerns. India continued to suffer foreign outflows amid economic and trade volatility.
Thailand saw its third week of withdrawals despite government stimulus efforts, including a US$4.4 billion cash handout to boost domestic spending. Indonesia recorded net outflows as its government maintained a 2025 budget deficit target of 2.53 per cent of GDP, even as tax revenues plunged 30 per cent early this year.
Vietnam is reviewing import duties on US goods, including liquefied natural gas and agricultural products, to ease trade tensions and avoid retaliatory tariffs from Washington.
Meanwhile, Malaysian retail investors extended their net buying streak for a fifth week, though at a slower pace, with inflows dropping sharply to RM31.5 million from RM264.2 million the previous week.
MIDF Amanah said average daily trading volume rose across the board, except for retail investors. Foreign investors and local institutions saw gains of 11 per cent and 10.9 per cent, respectively, while retail participation dipped 1.6 per cent. – BERNAMA
